When I read and the speaker asks me to create a list, I find that I usually do not do it, for whatever reason.
So I made one for you. Feel free to disagree with the comment box below.
Ordered from most important to least important, which happens to equal most fixed to most flexible.
Needs*:
1. Taxes - they come out of your check first anyways, so they are at the top
2. Rent - no one wants to get evicted
3. Utilities - no one wants to get dressed in the dark
4. Loan payments - you promised you'd make this a priority to pay back
Mixed:
5. Food - Dining Out vs. Eating In, or Steak vs. Canned Tuna can be flexed
6. Health - getting prescribed meds is a need - getting Name Brand meds is not.
7. Transportation - getting to work is a need - getting to the mall is not.
Wants:
8. Personal Travel - yes you WANT to explore the world, but save up to go do it.
9. Clothing - unless you are currently naked, this is a want
10. Recreation - of course you WANT to go to the movies, but make sure it fits first
*series on how to control these coming soon
Budgets set up in order of most important (needs*) to least important (wants) will help you
a) keep you spending in perspective
b) remind you your obligations need to be paid first
c) show you that you still have something leftover for fun
d) or if nothing is leftover for fun, it reminds you that some "needs*" probably have "wants" attached to them, and the "wants" need to be clipped fast
b) remind you your obligations need to be paid first
c) show you that you still have something leftover for fun
d) or if nothing is leftover for fun, it reminds you that some "needs*" probably have "wants" attached to them, and the "wants" need to be clipped fast
Understand a need* versus a want? Good - now you know the basic way to start your budget.
" Clothing - unless you are currently naked, this is a want"
ReplyDeleteLove it. So true - and this is why I wear the same clothes to work all the time. I'm glad you don't judge me. :-)
I am all about wearing the same clothes all the time (Friday blue shirt day, anyone??). The trick is to save up to stock up on clothes that a) make you look good b) make you feel good. I used to buy clothes I only kinda liked because they were "such a good deal." Great deal until I throw them in the Goodwill pile 3 weeks later..
ReplyDelete